The Indian finance ministry is reconsidering a proposal to merge three state-owned general insurance companies, namely Oriental Insurance, National Insurance, and United India Insurance, into a single entity. This move is being considered due to the improved financial health of these companies, with the goal of achieving better efficiency and scale. Between 2019-20 and 2021-22, the government infused Rs 17,450 crore into these companies to help them recover from financial distress.<\/p>\n
The idea of merging these companies was first announced by former finance minister Arun Jaitley in the 2018-19 Budget. However, the plan was dropped in July 2020, and instead, the Union Cabinet approved a capital infusion of Rs 12,450 crore into the three general insurance companies. Now, with their finances improved, the finance ministry is conducting a preliminary assessment of the merger proposal to enhance their efficiency.<\/p>\n
In addition to the merger proposal, the government is also exploring the option of privatizing a general insurance company, as announced by finance minister Nirmala Sitharaman in the 2021-22 Budget. This is part of a larger privatization agenda, which includes the privatization of two public sector banks. According to sources, various options are being considered, but no decision has been made yet.<\/p>\n
The potential merger and privatization of these state-owned general insurance companies are expected to have significant implications for the Indian insurance sector. The merger could lead to improved efficiency and scale, while privatization could attract foreign investment and increase competition in the market. However, the outcome of these proposals is still uncertain, and the government is likely to carefully consider the potential benefits and challenges before making a decision.<\/p>\n","protected":false},"excerpt":{"rendered":"
The Indian finance ministry is reconsidering a proposal to merge three state-owned general insurance companies, namely Oriental Insurance, National Insurance, and United India Insurance, into a single entity. This move is being considered due to the improved financial health of these companies, with the goal of achieving better efficiency and scale. Between 2019-20 and 2021-22, […]<\/p>\n","protected":false},"author":1,"featured_media":221269,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"fifu_image_url":"","fifu_image_alt":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[22,39],"tags":[],"class_list":["post-222488","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-insurance","category-united-india-insurance"],"jetpack_featured_media_url":"https:\/\/smallnews.in\/insurance\/wp-content\/uploads\/sites\/5\/2025\/04\/united-india-insuracne.jpg","jetpack_shortlink":"https:\/\/wp.me\/p9ibIB-VSw","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":222634,"url":"https:\/\/smallnews.in\/insurance\/2026\/01\/09\/finance-ministry-considers-consolidating-state-run-insurance-companies-rediff-moneynews\/","url_meta":{"origin":222488,"position":0},"title":"Finance Ministry considers consolidating state-run insurance companies: Rediff Moneynews","author":"Team Small News","date":"January 9, 2026","format":false,"excerpt":"The Indian Finance Ministry is reconsidering a proposal to merge three state-owned general insurance companies - Oriental Insurance, National Insurance, and United India Insurance - into a single entity. This decision comes after the companies' financial health has improved following a capital infusion of Rs 17,450 crore between 2019-20 and\u2026","rel":"","context":"In "Insurance"","block_context":{"text":"Insurance","link":"https:\/\/smallnews.in\/insurance\/category\/insurance\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":222502,"url":"https:\/\/smallnews.in\/insurance\/2025\/12\/24\/the-government-is-considering-merging-state-owned-general-insurance-companies-into-a-single-entity\/","url_meta":{"origin":222488,"position":1},"title":"The government is considering merging state-owned general insurance companies into a single entity.","author":"Team Small News","date":"December 24, 2025","format":false,"excerpt":"The Indian government is considering a plan to merge three state-owned insurance companies - Oriental Insurance, National Insurance, and United India Insurance - into a single entity. This move is aimed at achieving better efficiency and scale, as the financial health of these companies has improved. The Finance Ministry is\u2026","rel":"","context":"In "Insurance"","block_context":{"text":"Insurance","link":"https:\/\/smallnews.in\/insurance\/category\/insurance\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":222652,"url":"https:\/\/smallnews.in\/insurance\/2026\/01\/12\/centre-considers-significant-overhaul-of-public-sector-general-insurers-including-merger-or-privatization-options\/","url_meta":{"origin":222488,"position":2},"title":"Centre Considers Significant Overhaul of Public Sector General Insurers, Including Merger or Privatization Options","author":"Team Small News","date":"January 12, 2026","format":false,"excerpt":"The Union finance ministry is considering major restructuring options for three public sector general insurance companies in India: National Insurance Company, Oriental Insurance Company, and United India Insurance Company. The potential options include merging two of these companies with New India Assurance, a profitable and listed insurer, merging all three\u2026","rel":"","context":"In "Insurance"","block_context":{"text":"Insurance","link":"https:\/\/smallnews.in\/insurance\/category\/insurance\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":222723,"url":"https:\/\/smallnews.in\/insurance\/2026\/01\/23\/11-6k-cr-pay-day-at-psu-insurers-rbi\/","url_meta":{"origin":222488,"position":3},"title":"11.6k cr pay day at PSU insurers, RBI","author":"Team Small News","date":"January 23, 2026","format":false,"excerpt":"The Indian government has approved a retrospective wage and pension reset for employees of public sector general insurers, the Reserve Bank of India (RBI), and the National Bank for Agriculture and Rural Development (Nabard). The total payout is estimated to be around Rs 11,640 crore. The majority of this amount,\u2026","rel":"","context":"In "Insurance"","block_context":{"text":"Insurance","link":"https:\/\/smallnews.in\/insurance\/category\/insurance\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":222521,"url":"https:\/\/smallnews.in\/insurance\/2025\/12\/26\/privatization-of-general-insurers-gets-a-reboot-following-fdi-cap-increase-2\/","url_meta":{"origin":222488,"position":4},"title":"Privatization of general insurers gets a reboot following FDI cap increase.","author":"Team Small News","date":"December 26, 2025","format":false,"excerpt":"The Indian government is set to restart the process of privatizing a state-run general insurer in the next financial year. This decision comes after the Parliament passed a bill to increase the foreign direct investment (FDI) limit in the insurance sector to 100%. The government is expecting more players to\u2026","rel":"","context":"In "Insurance"","block_context":{"text":"Insurance","link":"https:\/\/smallnews.in\/insurance\/category\/insurance\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":222643,"url":"https:\/\/smallnews.in\/insurance\/2026\/01\/11\/odisha-government-to-release-standard-operating-procedure-for-expediting-accident-insurance-claims-settlement\/","url_meta":{"origin":222488,"position":5},"title":"Odisha government to release standard operating procedure for expediting accident insurance claims settlement","author":"Team Small News","date":"January 11, 2026","format":false,"excerpt":"The Odisha State Road Transport Corporation (OSRTC) has empanelled five leading insurance companies to provide coverage for road accidents. These companies include New India Assurance Co Ltd, Iffco-Tokio General Insurance, Oriental Insurance Co Ltd, United India Insurance Co Ltd, and Go Digit General Insurance. Initially, Go Digit General Insurance was\u2026","rel":"","context":"In "IFFCO Tokio"","block_context":{"text":"IFFCO Tokio","link":"https:\/\/smallnews.in\/insurance\/category\/iffco-tokio\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/smallnews.in\/insurance\/wp-json\/wp\/v2\/posts\/222488","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/smallnews.in\/insurance\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/smallnews.in\/insurance\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/smallnews.in\/insurance\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/smallnews.in\/insurance\/wp-json\/wp\/v2\/comments?post=222488"}],"version-history":[{"count":0,"href":"https:\/\/smallnews.in\/insurance\/wp-json\/wp\/v2\/posts\/222488\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/smallnews.in\/insurance\/wp-json\/wp\/v2\/media\/221269"}],"wp:attachment":[{"href":"https:\/\/smallnews.in\/insurance\/wp-json\/wp\/v2\/media?parent=222488"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/smallnews.in\/insurance\/wp-json\/wp\/v2\/categories?post=222488"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/smallnews.in\/insurance\/wp-json\/wp\/v2\/tags?post=222488"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}